The competition between the five children over the succession of Bernard Arnault (74), the world’s richest man who overtook Elon Musk last year and the general chairman of LVMH, the world’s largest luxury goods empire, is in full swing. The Wall Street Journal (WSJ) reported on the 19th (local time) that the selection of a successor to lead LVMH after Chairman Arnault will be conducted in the form of an ‘audition’.
Once a month, in a special restaurant at Louis Vuitton’s headquarters in Paris, France, Chairman Arnault has a 90-minute meal with his five children. The meal begins with Arno reading a discussion topic on an iPad prepared in advance and asking his children for their opinions and advice. Arno consults with his children on all trivial issues and important decisions in the LVMH kingdom.
Over the past few decades, Arnault has taught all five of his children the ability to run LVMH. Arno has taken his children on business trips and business meetings abroad in the past. Through this, Chairman Arnault is strengthening his family’s control over LVMH even after his retirement.
However, five children cannot rise to the LVMH general president position, which is only one seat. Chairman Arno’s unique way of educating his children amplified the dilemma of who would succeed the chairmanship of LVMH, the world’s largest luxury empire.
The most likely successor to date is Delphine Arno, the most famous daughter of the five children. Delphine Arnault, 48, took the position of CEO of Christian Dior, a key subsidiary of LVMH, in January. With this in mind, the WSJ evaluated that Delphine is at the forefront so far.
However, all of the other children also play key roles in the LVMH affiliate. Second, Antoine Arnault (46) was appointed vice-president of the holding company Christian Dior SE in December last year. Their third son, Alexander Arnault (31), is vice president of Tiffany & Co., a world-class luxury jewelry company, and their fourth son, Frederic Arnault (28), is the CEO of luxury watch maker TAG Heuer. His youngest son, Jean Arnault, 24, also started his business by taking charge of the watch division at Louis Vuitton.
It is known that Chairman Arno was shocked by his friend, an entrepreneur who died without preparing a successor. According to an interview conducted by the WSJ with people around Arnault, he said that in 2003, after the sudden death of Jean-Luc La Gardère (75), a respected businessman in France, his best friend, the company was sold by his son. After seeing this, I began to seriously think about the succession issue.
However, Arno has never officially mentioned his successor. Sidney Toledano, former CEO of Christian Dior, said, “Arnault never said that his children must be his successors.”
In March, Chairman Arnault extended the retirement age for LVMH general chairman from 75 to 80 years old.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.